US private sector witnessed a notable slowdown in employment growth last month, as revealed by the ADP’s latest report. A mere addition of 89k jobs in September fell significantly short of the anticipated 155k.
Dissecting these figures, goods-producing sector experienced a modest increase, adding 8k positions, while services sector contributed the lion’s share with an 81k rise. By establishment size, small companies added 95k jobs, medium added 72k, large cut -83k.
In terms of wage dynamics,for those who remained in their current positions, the median change in annual pay persisted at 5.9% yoy. However, those switching roles saw a deceleration in wage growth, descending from 9.7% yoy to 9.0% yoy.
Nela Richardson, ADP’s chief economist, expressed her concerns on the current employment scenario, stating, “We are seeing a steepening decline in jobs this month.” Adding to the bleak outlook, she commented on the wage scenario, observing, “Additionally, we are seeing a steady decline in wages in the past 12 months.”